1. Dow Jones
4. Why Chemical Companies Rallied (Applicable to All Companies With Crude as RM)
4. Why Sugar Stocks Rallied
5. Management Changes. Visionary Leaders
6. Valuations Are Getting Stretched. Overall Picture is Not Rosy
7. Compare with Peers
8. What Do You Think About This Moneycontrol Headline?
If we go by above statistics, Indian market has not performed anything exceptional than its global peers. In fact it has largely under performed Karachi stock market. We should also keep in mind that most of the FII selling in last few months have absorbed by DIIs, which is literally playing with citizen’s pension and provident funds.
In 2015-16, EPFO pumped INR 6000 crores of pension funds to stock market. In 2016-17, Government raised the investment limit to INR 12,000 crores, despite the opposition from various trade unions. In 2017-18, the amount was raised again to INR 18,000 crores. So in nutshell Government has pumped nearly INR 36,000 crore into Indian stock market.
It is quite interesting that central government is pumping citizens money into a market which is trading at stretched valuations to keep the tagline – “Market booming under Modinomics”
The reform initiatives by the government, such as fixing of banks’ stressed assets problem and implementation of a goods and services tax (GST) have boosted investor sentiment. While the gains have been supported by positive institutional investors’ flows, analysts are still waiting for signs of sustained recovery in the economy and on corporate earnings.